With inflation completely triggered and threatening the profitability of the stock markets, investing in real estate through mutual funds is an alternative to consider in 2022.
Real estate is one of the classic refuges with rising prices. They are real assets that normally appreciate as inflation escalates, just the opposite of what happens with bonds or stocks.
Due to their investor profile, Spanish savers have always had a special predilection for brick, although rather oriented towards the purchase of physical property.
In reality, the most efficient alternative to investing in real estate is to do it through investment funds, unless you want to own the asset for its enjoyment or rental.
The funds add several benefits. First, they allow for modest investments rather than having to buy the entire property. In addition, they provide almost immediate liquidity, in the face of the difficulties that many times there are to sell a home or garage.
Among the range of national funds to invest in real estate, these are the funds that have done the best in 2021 according to the ranking of quefondos.com.
Global exposure to the big real estate giants
With a return in 2021 of 37 percent, the fund Ibercaja real estate sector FI tops the list among the most profitable vehicles. At three years, the return is 52 percent.
It is a fund that invests at least 75 percent of its assets in listed companies in the real estate sector, focusing on Europe and the United States.
Among the stocks with the greatest weight in its portfolio are global giants in the real estate and construction sectors.
The largest participation is in Prologis, with 6.3 percent. It is a global real estate company that operates in Europe, Asia and the United States and that has a 68 percent increase in the stock market this year.
It also has an important weight in Vonovia, the German real estate giant that has just taken over the Deutsche Wohnen group.
In addition, this fund has a 2.81 percent position in the Spanish construction company Sacyr, which closed the year up 13 percent.
Investment through REITS
A very short distance in profitability is placed the fund Medionlanum Real Estate FI, with returns in the year of 35 percent.
In this case, the investment proposal is articulated mostly (although not exclusively) through REIT companies (Real Estate Investment Trust), which are companies that are listed on the stock market and are dedicated to both the exploitation and the sale of real estate .
Again, the bet on Prologis, the value with the greatest weight in the portfolio, 7.8 percent, is the differential nuance in the profitability of this fund.
The rest of the companies with greater prominence are unknown to Spanish investors, but they accumulate significant returns. For example, Public Storage appreciates 61 percent and Digital Realty Trust 26 percent.
Among the factors to take into account, it is a fund that could have an exposure to currency risk of more than 30 percent.
Take advantage of potential highs
The third position among the most profitable real estate funds in 2021 is for the GVC Gaesco Real Estate Opportunities FI, which generated a return of 21 percent.
His investment philosophy is to seek opportunities in countries that are in the valley of the real estate cycle, and therefore have prospects for improvement. In this regard, avoid overheated regions.
As the manager herself explains, it is a fund for investors with “a certain opposite mentality”, who invest in a “reviled” sector after the latest real estate bubbles.
The opportunities arise precisely because of the fact that the bubble was not global. It is a product that allows you to obtain periodic annual income of 4 percent.
Among its largest portfolio positions is the Spanish Socimi LAR Real Estate (7.5 percent), which closed the year on the stock market with a rise of 11.9 percent.
In addition, it has a portfolio share of 4.1 percent in Metrovacesa, which posted a 30 percent rise.